Babcock & Wilcox Reports Q2 2025 Revenue Growth Amid Financial Challenges

Babcock & Wilcox Enterprises reported a 31% increase in Global Parts & Services revenues in Q2 2025, driven by rising demand from AI and data centers. Despite a net loss of $6.1 million, the company improved its financial health through asset sales and debt reduction. The sale of Diamond Power International and a 49% increase in backlog underscore B&W's strengthened market position and positive outlook.

Babcock & Wilcox Enterprises, Inc. (NYSE: BW) reported a strong second quarter (Q2) 2025 performance, driven by a significant 31% increase in Global Parts & Services revenues, primarily due to rising demand from artificial intelligence (AI) and data centers. Despite a net loss of $6.1 million, the company demonstrated improved financial health through strategic asset sales and debt reduction [1].

Key financial highlights for Q2 2025 include:
- Revenue of $170.8 million, including Diamond Power, and $144.1 million from continuing operations without Diamond Power.
- Adjusted EBITDA of $21.6 million, including Diamond Power, and $15.1 million from continuing operations, a 90% increase from Q2 2024.
- Operating income of $8.1 million, up from a loss of $4.4 million in Q2 2024.
- Net loss from continuing operations of $6.1 million, an improvement from a $20.5 million loss in Q2 2024.

The company's backlog increased by 49% to $418.1 million, reflecting the robust demand for thermal projects. Additionally, Babcock & Wilcox completed the sale of Diamond Power International for $177 million, significantly enhancing its balance sheet and net leverage ratios [2].

Kenneth Young, CEO of Babcock & Wilcox, noted that the company is actively pursuing large upgrades and new builds in the US to support power generation needs, with key announcements expected by the end of the year. The company is also exploring the use of its BrightLoop technology for steam and hydrogen production, with over 10 projects in the pipeline [3].

The positive outlook is supported by the company's expectation of strong demand for base-load generation technologies and growth in the Global Parts & Services business. However, the company still faces challenges, including volatile large project revenue and ongoing debt reduction efforts.

Analysts remain cautious, with the current average rating being "hold" and the median 12-month price target for Babcock & Wilcox Enterprises Inc. set at $1.50, about 12% above its August 8 closing price of $1.32 [2].

References:
[1] https://finance.yahoo.com/news/babcock-wilcox-enterprises-inc-bw-070743560.html
[2] https://www.tradingview.com/news/reuters.com,2025:newsml_PLX0FBCE1:0-babcock-wilcox-enterprises-q2-revenue-misses-expectations/
[3] https://www.babcock.com/home/about/corporate/news/babcock-and-wilcox-enterprises-reports-second-quarter-2025-results